The NZD/USD currency pair bounced off the lower boundary if an ascending channel pattern at 0.7140 on Tuesday. As a result, the New Zealand Dollar surged by 58 pips or 0.82% against the US Dollar during yesterday’s trading session.
Currently, the exchange rate is trading near the upper line of the channel pattern and could be set for a breakout.
If the breakout occurs, a surge towards the 0.7300 area could be expected within this session.
However, if the ascending channel holds, the currency exchange rate is likely to make a retracement towards the 0.7184 today.
